I think that Barry is right on, here.

I took the time to summarize his team's extraordinary report.

http://www.bizop.ca/blog2/due-diligence/usana_a_pyramid_scam.html

I agree with you Michael. I'm in the process of reading through Barry's report and as a former associate of the company, I'm astonished to see how many outright lies were force fed to myself and other distributors.

There is always a danger of comments (whether written or verbal) hitting way off mark when the subject in question ie. in this case, USANA, is looked at through the wrong end of the telescope. And it’s such a shame that USANA’s share value has dropped because of scaremongery based on this ignorance.

What has been missed - and it's a crucial detail - is that it is the responsibility of each distributor in the USANA business to establish his/ her own customer base to whom products are SOLD. This is quite separate from distributors recuiting new distributors into their teams for the purpose of growing their businesses. Understand, without SALES, there simply is NO BUSINESS. And, it's a balance of BOTH areas of activity that create legitimate and sustainable growth. It's the same as any other business competing for market share & business growth simultaneously. Capturing market share comes from communicating with people who in turn purchase your product. Network Marketing is a remarkable business model when carried out responsibly, and has the ability to penetrate markets directly, where conventional advertising may fail. It is easy to see, though, why it receives so much bad press, when you hear of unethical practices entailing purely recruitment, with little to no attention being given to generating TRUE SALES through a REAL CUSTOMER BASE. When are people going to learn that there is NO business without CUSTOMERS ? It's the movement of product from point of manufacture to end consumer, and the consumer benefiting from that product - either directly (if they are using it themselves), or indirectly (if they are giving it away as a gift). And, that anything else is purely a money game; and it’s the latter that deserves all the knocks! The bottom line is that it's down to the distributors to act responsibly & ethically.

USANA have been around for a while, and are a brand-established billion dollar corporation. Their customer acquisition & market share has been, and continues to be achieved via Network Marketing - a distribution business model designed for the 21st century. My advice is to watch out for it, get involved, and learn about it from the inside. It’s only then that the penny really drops! There are many other companies to choose from, & to profile. And, due diligence is crucial for peace of mind.

Incidentally, I am not a USANA distributor, but because of my 10 year involvement in the Network Marketing industry (& make no mistake, it is a dynamic industry!), and my commitment with another company, my authority on the subject comes from a position of KNOWING from the inside !! If you want to know more, please feel free to contact me at pdscoach@blueyonder.co.uk or eezeliving@sky.com

As a final note of compassion, I hope USANA picks up from this dip.

"What has been missed - and it's a crucial detail - is that it is the responsibility of each distributor in the USANA business to establish his/ her own customer base to whom products are SOLD."

Actually, it is the legal responsibility of USANA to make sure that distributors are not front loaded, and that the product is being sold primarily to consumers.

Everybody acts like it is such a bad thing that Mr. Minkow is trying to expose security fraud before we have another Enron ordeal. By being proactive and publicizing his findings, the investor is better protected. And a performing company's stock will be unfazed by one person's report. How come "opportunity" is one of the three main sections labeled on the USANA website :) Opportunity to me (and the SEC) means either one of two things in this world: investment or job. Jobs pay more than 900 dollars for a year of work. Investments need to be disclosed according to the rules of the Securities and Exchange Act of 1933 and 1934. The most major wrong committed here is the ruthless manipulation of stock price that is clearly obvious by the patterns of insider stock sales over the past several years. Why would the head of this company only sell and never buy....???? Anywayz, all of this talk of uplines and downlines makes no sense in the "true" business world. But it seems to be an opportunity to the hopeless and unhireables that flee from contributing to innovation and productivity for this country, in hopes of making $800.00 this year by selling marked up Centrum. Honestly, I wish that these pyramid scheme players would just do us all a favor and go on welfare. You all make a really bad religion... And I would think that the state of Utah would have higher values for those conducting business in such a clean cut state.

Goodness. "In my opinion, "multi-level marketing" companies strongly resemble pyramid schemes due to their 1-2-4-8-etc. hierarchy, meaning one person sits at the top and receives the most commissions while, as you move down the pyramid, the commissions decrease." Is this a description of Corporate America? Shell Oil, anyone?

USANA does not edorse "front loading" in fact quite the opposite, the company is a direct sales and they ship directly to the customers. The associates do not have any reason to stock up on products...

I disagree with the last comment because Shell Oil has an actual marketing plan and pays it's employees salary. I believe that the pay differential that is mentioned is referring to stock options and that has more to do with something called the agency conflict that corporations have not been able to deal with without paying CEO ridiculous somes of money in stock options in the hopes of keeping the company afloat. There is an obvious agency conflict in the case of USANA and the government needs to step in and do something about it. Although Shell oil is not ethical in what they do, governments in South America have a responsibility to establish better pay for their people. Shell is operating according to the rules of the SEC by paying it's workers, USANA has no paid workers. The company is run like an evangelistic church, where people pay the price for sales that are usually paid for and reflected in the I/S statement as SGandA. Check out any other company's books. This is the cost of doing sales. USANA uses crazy theoretical concepts that are usually used in pyramid schemes to brainwash people into volunteering their own funds in place of SGandA. Uplines and Downlines and what not. Shell sell oil, which has an obvious demand because so many people in the U.S. gas guzzlers. Vitamins are nowhere close to being short in supply and the department of Justice typically steps in when vitamin companies collude to increase the prices. Oil companies actually take tremendous risk in what they do. The biggest risk here is for the people who sign up to be associates of USANA :)

Before making assumptions after reading Mr. Binkow's report, one must understand USANA's compensation plan before making judgement. Anyone at anytime can jump into this business and SURPASS the income of an associate that has been in longer. Whatever you put into the business, you recieve. If I were to purchase a restaurant, not show up but a few hours of the week, I wouldn't make any money. I could gripe and say that the deal was "false and misleading" if I did not work MY BUSINESS that I was responsible for. This is what people aren't getting. You must realize that every business is shaped like a pyramind. For example a grocery chain like SAFEWAY, the owner would be at the top, underneath, a VP, underneath, Executive Officers, then underneath, regional managers, underneath, district managers (we are moving towards the base now) then underneath, store managers, then checkers and at the very bottom of the pyramid would be baggers. The baggers will never make as much money as the owner of Safeway. In Network marketing, turn the pyramid upside down and everyone comes in at the bottom and there is plenty of room at the top. One can surpass anothers income and time in the company has nothing to do with it. It is okay to have that AHA moment about right now. The real scheme is that someone that is working for someone else as an employee is only going to get what the owner believes he/she is worth and trading time for dollars. Until you understand this, you will step back and let go of the ignorance that EVEN I ONCE HAD. Why would Trump, Dennis Waitley, Robert Kiyosaki and Robert Allen endorse Network Marketing? They have done the research, others just heard from our parents or friends otherwise.

This is so great! So many of these companies pop up in Utah. The MLM capital of the world for sure. I even heard about a comedy about Multi Level Marketing that is coming out in Utah April 20. It's called Believe and it looks hilarious!

www.believethemovie.com

Everyone check this out and watch the videos!

There is a lot of commentary on this page but I haven't seen anything yet about the how well the USANA products work. I became very sick for 4+ years and could not work after having a very successful, award winning career. I went to many specialists and they all told me to get used to my conditions because there was nothing they could do for me. Everybody and their brother knows someone in network marketing and I tried everyone else's stuff and nothing worked. When a friend recommended USANA, I blew him off because I had already spent thousands of dollars on other companies' products because at age 55 I was not going to give up but I was tired of nothing working and losing a lot of money. I finally gave in and tried USANA and in less than a month I got my life back. The comparison to GNC and Centrum are a joke. It doesn't matter how much money you "save" if the products do not work. By the way, these are listed in the PDR while many others are not. I am now a distributor because of the life changing effect these products had for me. I have made money (because people who knew me all along are amazed at my recovery and want good health for themselves), but even if I didn't, I would spend the rest of my life recommending USANA because as I say I got my life back and what is the price of that? The doctors who didn't have a cure didn't offer to give me my money back. Mr. Minkow, shouldn't I and the insurance companies start a class action law suit against the medical profession for taking my money and not giving me results? Please understand that I am not alone in my success story. My wife, had Lupus and now she no longer suffers from it's effects. She doesn't even have the damage caused by the side effects of the drugs that she was on that were used to "treat" her. If you want to say that it is psychological or a plecebo effect please explain to me why those effects did not take place when we were trying everything else. This stuff works! So Mr. Minkow, and those who have a ax to grind with network marketing, please find another way of making money besides destroying a company that restores health to people that the medical profession has written off.
p.s. Don't the restaurant industry, home improvement industry, and other businesses have something like a 90% failure rate after people have invested a whole lot more money to make them work? It seems to me that perhaps that some people don't understand the difference between being an entrepreneur and an employee. If you want to play it safe, keep your day job (until the company lays you off). Thank you.

Why is this "for-profit" Fraud Discovery company investing money into Google Adsense to get people to see this 500 page report?

He states that he bought 'put' options on the stock which means he stands to profit on the fall of Usana's stock.

Looks like this long time fraudster is up to his old tricks again.

Let's see... Minkow is a convicted felon of... guess what ... STOCK FRAUD.

Now, he's been paid (he now admits) to put this "report" out. So, he's made money on the front side.

Plus, he's looking to make money on the back end by manipulating the stock price so he can buy it at a lower price! (ala the stock "puts" he has in place)

NO ONE INVESTS IN TO A COMPANY THAT THEY BELIEVE IS A FRAUD. NO ONE INVESTS IN A COMPANY IN TO WHICH THEY BELIEVE THEY WILL LOSE MONEY!

My bet is that after he's had to pay out for the defamation lawsuit that is now against him (and rightly so) that he'll get yet ANOTHER hefty check from the person and/or persons (and/or entities). After everyone has "forgotten" about this, he'll get a nice payment. He'll get it at that time b/c no one is paying anymore attention. So, he profits once, again.

You don't improperly damage a company like this and think you'll get away with it. He and his co-horts knew that there would be a price to pay. Apparently, whoever financed him is willing to pay it.

I too have to say that their products work. I am a 40 year old male that HAD bad knees, progressively worse over the past ten years. A ten year aquaintance of mine approached me about the buisness side of USANA and I declined but started the supplement Percosa 2, a glucosamine sulfate formula and within a month the pain had almost dissapeared. I know what you are thinking, no I'm not trying to sell you products, I'm not claiming their products to be magical cure alls, and I'm not trying to sign any of you up to be distributors. What I am doing is telling you that the products work, and better than the big name brands. I could go on and on about how they have changed my life, my wife's life, and countless other's lives but I will just say this; look at the products, look at the difference in the products: how they are manufactured and tested, look at the compensation plan and then form an educated opinion. I became an associate after the products worked for me, I was skeptical about the network marketing until I studied USANA's system and realised that it is fair and practical compensation.
As far as the ex-convict and his alleged statements, just use your common sense, look at the facts of his past and his present situation and you will see that he is trying to manipulate the situation for profit, plain and simple.
The sad thing is that there are far too many people that are willing to believe that no one can be rewarded for stepping out and going for the American dream with hard work and honest products. They will always believe as I did not too long ago; if you don't work for "The Man" and you become successful on your own there must be a catch. I hope you all will look at the facts and not get caught up in the sensationalism of senseless babbling.

Mr. Minkow is a convicted stock fraud felon. Usana's founder, Dr. Myron Wentz is a Phd cellular microbiologist and immunologist. Mr. Minkow deals on the seedier levels of life. Dr. Wentz works to develop and bring forth nutritional products to enhance health and life. Mr. Minkow is a mudslinger. Dr. Wentz is a healer. Dr. Wentz is a Usana stockholder who has never received $1 in compensation from Usana. Mr. Minkow is being paid by a client to produce a seriously flawed report.
Are you starting to get the picture? Mr. Minkow works to support his own interests. Dr. Wentz and USANA put in much effort to support the Children's Health Fund. And I could go on and on and on. When this situation sorts itself out Mr. Minkow will be on the prowl for another victim to throw mud at. Dr. Wentz and USABA will be working to improve the health and well being of people's lives.

Just a thought before supper

USANA does make its profits from its associates that was the first thing i noticed before i joined. but even if it does make its profit from the associates, these products are at least if not better than most products out there, when compared by third parties. and u must understand that when your building your own buisiness there are always risks no matter what you do. but for those who succeed and have confidence in being able to achieve their goals, it sure beats the hell out of working for someone, getting taxed almost half of your total income. the company is not a fraud when it comes to the products, it definately delivers quality products, but the way it is selling products is a bit risky, i admit.

I also was having major health problems unable to get out of bed because of pain and low energy. I was introduced to the products and within weeks I was a new person. I work in the medical profession and with an extensive eduction into how the body works and what it needs applaud USANA for a product that promotes health. I and my family use the products daily and have enjoyed excelent benefits and no major heath problems. As I near 60 years old I attribute my good health to Usana and after starting the products I felt so strongly abou the company I became an Associate and also purchased stock. These decisions have both proven to be financially and physically sound as well as rewarding. I thank Dr Wentz for his insight in cellular growth and in forming a company that does not sell their products in Walmart to get lost with the so called "bed pan bullets" that literally go through your digestive system without being absorbed. If more people would invest in products that work we would have less patients needing medical care. What ever system allows the products to reach and help maintain the health of the populus is OK with me. Maybe we should focus more on USANA as a company rather than knock how it provides financial stability to so many Associates world wide. Comparing USANA with products on the shelves is like comparing apples and oranges. USANA ofers a money back guarantee does GNC or any other company. Vitamins can be manufactured in someones basement and marketed with any false claims they want to because of a lack of regulations. USANA follows strict guidelines in manufacturing and distributes the products directly to your door. Maybe Mr. Minkow tried and failed and know feels he is owed something from USANA. Please research the products and the company before passing judgement.

Since Usana's Associates were never properly informed of their true failure rate or lack of profit, are there any class action suits being filed on behalf of the misinformed Usana Associates?

I myself am an Registered Nurse with over 20 years of experience as an RN. I have a four year Bachelor's of Science Degree in Nursing form the University of Minnesota School of Nursing and have worked in Oncology and Hospice Care in numerous hospitals during my 20+ year career as an RN.
I am also someone who had (past tense) "suffered" with Fibromyalgia and Chronic Fatigue Syndrome as well as bad arthritis in my knees, hips, and lower back.

UNTIL 1 year ago when, THANK GOD, I was introduced to USANA Health Science Products by MY HOLISTIC DOCTOR. I too was on bedrest 2 years ago, unable to be out of bed for more than 10 minutes at a time due to being so weak with my entire body being toxic and sick. Thanks to years of toxic medications that had poisoned my body and were shutting down all of my natural immune system defenses that my "well meaning" Doctors of medical science who could do "NOTHING" for me medically had given me to "treat" me.
USANA changed all of that and today, I am in the process of going OFF disability (after being on it for 3+ years)and active and healthy once again. I have successfully lost 100+ pounds on USANA's RESET Weight Loss System (where nothing ELSE worked) and I have regained my health to the point where I can go to the Y and work out 3 times a week, riding a stationary bike for 6 miles followed by swimming 24 laps in the pool without difficulty. I am setting up and starting a practice in my home of being a "Legal Nurse Consultant". Knowing what I know about the legal system, I totally understand what is going down with all the so-called "Class Action Lawsuits". These unscrupulous law firms see an opportunity to try to get amazing amounts of money to pay for their 100,000 cars and their vacation homes in Tahoe and they take the chance while the "door is open" to get money out of this truly successful, legitimate company--USANA-- and they take the chance that the lawsuit will work out to their advantage. All lawsuits are is laywers betting on "the winner" like in a horse race. They Invest funds in hopes of "winning" the "Daily Double". The fact that these law firms are "jumping in" only underscores just how unscrupulous they really are. As a Legal Nurse Consultant I seek to find ethical attorneys I can work with on legitimate cases to ultimately help people. I also keep a notepad at my bedside at night on which I write down the names of the "unscrupulous law firms" that are out for MONEY. I will add these Class Action firms to my personal "DO NOT CONTACT" list as they have shown their true colors. I will jot them down right alongside the law firms who are looking to sue certain drug companies, etc. LAW is 100% about MONEY...period.
The fact that I am now well after 20 years of being sick to the point of planning my own funeral at age 46 should tell you something about the quality of USANA Products. 20 years of "trying everything under the sun" in terms of nutritional supplements and weight loss with ZERO success should tell you something. I got on USANA supplements and my pain went away--I am almost completely off of pain medication which I have been dependent on for 20 years as a result of healthier cells and a healthier body. My body is finally "detoxed" enough form the 20+ years of drugs the Doctors had me taking to where a numbe of other serious health problems: cardiac, blood pressure, reflux disease, sleep apnea and lower leg edema have totally resolved. I can continue on with health improvement thanks to USANA and lead and active, healthy full life on into my old age with my spouse. Without USANA, I would have possibly been DEAD by now otherwise. As a RN this is SIGNIFICANT. I took alot of the "competitive" products that Mr. Minkow and his report are calling "comparable" and all I did was excrete them in much the same form that they were ingested in..a solid tablet that never broke down in my system. I never had any positive "health results" from taking the other supplements and I took everything out there in 20 years time. I wish I had found USANA years ago: I lost many years of my life that I would not have HAD to lose!!!
Am I a USANA distributor? Now..absolutely!!! I care not what is published about them to the negative. I know that ignorance is abundant and people only believe what they WANT to believe anyways. I know I got MY life back...can now be a successfully FT practicing Legal Nurse Consultant and lead a busy and very fulfilling life enjoying my family and my "golden years" with my husband as a result of USANA and I will continue to take USANA until the day I die. I have lost 100 pounds successfully thanks to the RESET Weight Loss Program and am continueing to lose and will reach my IDEAL Weight thanks to USANA as well!!! IN ONLY two years time!!! So much for Weight Watcher's, Jenny Craig, South Beach, and I could go on an on!!!
Also, just to set the record straight, my husband and I joyfully and actively build our USANA business and we maintain a customer base that feels the same way we do about the products and we also receive weekly checks of anywhere from $100 to $300 a week--EVERY WEEK-- as a result of our Part-time USANA business. We could grow alot faster in it if we wished to do so and we probably eventually will. But we have "tried" and been burned by true MLM "Pyramid Scheme" businesses in the past and we never made the kind of money we are making with USANA. Between tax savings from home business deductions and the actual checks we receive from USANA WEEKLY we are well "in the black" and not losing any money whatsoever!!! We did not become "front loaded" in the beginning either because people get their products for their own household shipped directly to their doorstep by USANA. We got into USANA after my "miracle recovery" began a year ago last October and between October and December alone we made $600 in checks that the USANA company sent directly to us!!! And that was with a relatively small business base (a few customers and a few distributors) I find it almost laughable that they talk the way they are about USANA because in Amway and several other MLM businesses we tried.we were lucky if we ever saw a $100 check that we could actually KEEP at any one point in time. Three years in the AMWAY business, the products never did anything for my health, our business spanned a 5 state area and we had 40 distributorships and on a good MONTH (as we were paid MONTHLY In that business) we were lucky if we could KEEP $40. We had to work the AMWAY business 40 to 60 hours a week to make that kind of money as well. in USANA I put in 5 or so hours a week and we are amking $100 to $300 a week..... Just compare the difference.....

Material disclosure breaches, 5 or 6 class action lawsuits against it, SEC inquiry, board members and executives lying about their education, an offshore tax sheltered holding company, the founder renounces his U.S. citizenship without disclosure, and a dozen other deceptions and most of you people are still supporting this company because you take and sell its products. WOW. Focus on the issues rather then the ex-convict who is nailing your company for the fraud it is; or just sink with the ship, its up to you. And by the way, sugar pills have amazing results as well, but then again its not that easy to deceive the public about the ingredients in sugar pills. Or maybe it is.